Value360: 2022 year in review
CohnReznick’s Transactions and Turnaround Practice was rebranded Value360 in July 2022 to reinforce the firm’s ability to help clients create value at every point of the business lifecycle. Building on its success in 2021, the practice exceeded $100 million in revenues in 2022 and experienced double-digit organic growth. The team continued to advise clients in many different industries as they sought to execute capital markets transactions, performance improvement activities, and restructuring/bankruptcy initiatives.
With a team nearing 250 members, the practice significantly expanded its leadership ranks with multiple strategic hires in transactions, valuation, project finance and consulting, and restructuring and dispute resolution. In addition, the practice expanded its service offerings to include infrastructure advisory as well as financial modeling and decision analytics.
Transaction Advisory Services:
- 850+ transactions valued at more than $25 billion
Restructuring and Dispute Resolution:
- Generated ROI (return on fees) for clients ranging from 2x-44x
Project Finance and Consulting:
- Serve majority of syndicators in $22 billion affordable housing financing market
- Testified at 39 hearings, in 9 states, representing 18 developers related to our Solar Farm Property Value Impact Studies
North Carolina Mill Rehabilitation Tax Credit (Article 3H) reinstated
- Background: After the state legislature in North Carolina re-instated a tax credit statute that had expired, we determined that our clients could benefit significantly from the tax credits.
- Our role: Technical subject matter expert/ drafted submission for credits on behalf of the client
- Results: After submitting a request for ruling, client received favorable determination from the Department of Revenue and is expecting an additional $3 million of tax equity.
Lisner Louise Dickson Hurt Home operating cost financial model
- Background: A not-for-profit operator of an affordable housing facility for seniors needed to reduce its operating costs and sought analysis under different scenarios.
- Our role: Created a budget/proforma model to conduct the comparison
- Results: Client leveraged our analysis to support a submission to a third-party entity for grant funding. Client was rewarded with a $3.5 million grant from the third party to fund much-needed renovations and capitalize a reserve for services.
- Background: A specialty retailer and consumer lender needed guidance on an acquisition which required raising a debt facility to finance the buyout.
- Our role: Lead acquisition advisor
- Results: Finalized the structure of the sourced capital and connected the buyer with a provider who funded the capital needed to acquire and operate the post-close store. Helped the buyer realize a 30% increase in financial performance through revenue improvements and lean operation initiatives, including beneficial lease modifications.
- Background: A third-generation, family-owned, beverage distributor with $300 million in revenue had to manage financial distress after leveraging the business to acquire a competitor.
- Our role: Performance improvement consultant
- Results: Increased EBITDA by 75% and generated a 200% increase in equity value. Improved Q1 cash flow by $650,000 while maintaining a 10% improvement in weekly cash flow through upgraded collections. Reduced inventory investment by 10% and dilution by $700,000 on rising sales. Realized more than $1.3 million in warehouse and delivery cost savings despite increasing volume.
Private equity majority stake acquisition of privately owned media and entertainment company
- Background: A capital provider concentrating on special situations required confirmatory financial due diligence as part of its acquisition process. Areas of focus included:
- Quality and sustainability of earnings (QofE)
- Purchase agreement assistance
- Identification and confirmation of operating trends
- Review of financial and operating environment and controls
- Identification of potential key-risks and areas of improvement
- Our role: Financial and tax due diligence advisor
- Results: We identified areas of risk and determined/quantified limited exposure. We uncovered areas where the seller/acquired entity could benefit from post-acquisition. The transaction successfully closed.
Acquisition of a durable medical equipment (DME) provider by a strategic client – Buy-side due-diligence
- Background: Our client, an in-home medical equipment/supplies provider, required confirmatory financial due diligence that included a billing, coding, and compliance review of the target in connection with an acquisition.
- Our role: Financial due diligence and billing, coding and compliance diligence
- Results: We identified an overstatement of earnings in the most recent period, resulting in a significant reduction in purchase price. We helped the client identify $1.4 million of vendor synergies that could be achieved on day one post-close.
Market studies for the Cesar Chavez Foundation
- Background: One of the most prominent affordable housing foundations required market studies for their full affordable housing portfolio.
- Our role: Demand analysis assessment
- Results: The data we collected allowed the client to assess rents and revise projections for 2023. Overall increase in bottom line allowed for additional resources to be funneled into future.
- Background: Two solar developers disagreed about the value of a solar renewable energy credit (SREC) strip for solar projects that were bought and sold. The seller hired us to determine the value.
- Our role: Valuation advisor
- Results: Our valuation was used to settle the case and confirm $1 million due to our client. Attorneys acknowledged that our expert witness deposition was key the settlement.
Press ReleaseCohnReznick earns three M&A Atlas awards for transactions workCohnReznick's award-winning Transaction Advisory Services team was recognized by Global M&A Network as the Transactions Advisor of the Year and earned awards for U.S.A. Private Equity Deal of the Year – Middle Markets and Health Care Deal of the Year during the 13th Annual Americas M&A Atlas Awards celebrations.
Press ReleaseCohnReznick rebrands Transactions & Turnaround practice as Value360CohnReznick LLP, one of the leading advisory, assurance, and tax firms in the United States, today announced that its rapidly growing Transactions & Turnaround Advisory practice has been rebranded Value360.
Press ReleaseCohnReznick’s Cohen and Soles named Top Women in consulting by The Consulting ReportCohnReznick's Claudine Cohen, Managing Principal, Transactions & Turnaround Advisory, and Kristen Soles, CPA, Managing Partner - Global Consulting Solutions and Government Contracting Industry Leader, named among The Consulting Report’s Top 25 Women Leaders in Consulting for 2022.
Press ReleaseCohnReznick named to ABF Journal’s Most Innovative Companies in Specialty Finance List for second consecutive yearFor the second consecutive year, the ABF Journal has named CohnReznick to its Most Innovative Companies in Specialty Finance list.
InsightMacroeconomic trends impacting the due diligence landscape: 2023 outlookClaudine CohenRead what today’s changing market dynamics mean for investors in 2023, with regard to adjustments, valuations, financials, management teams, and more.
InsightHow healthcare services consolidation and MSOs benefit buyers and sellersBuy and build strategies designed to consolidate fragmented subsectors is driving deal volume in the healthcare space. Learn how healthcare services consolidation and MSOs can benefit buyers and sellers.
InsightGovernment contractor valuation tracker: H1 2022In this latest Government Contractor Valuation tracker, we share key valuation indicators to help GovCon management teams and investors keep track of industry valuation benchmarks and trends.
InsightChecklist: Prepare your business for an economic downturnBusinesses need to take concrete steps now in order to manage and preserve cash, improve profitability, and reduce risk so they can survive a downturn. The following check list includes important proactive steps that every business should consider.
InsightPhysician practices: M&A trends and outlookAlthough there is uncertainty in the physician practices sector, we believe the sector is well-positioned to attract investor activity in 2023 and beyond. Learn more.
InsightBefore you file an estate tax return, here’s what to consider to maximize proceedsDonald NimeyIn some cases where assets’ value declines after the date of death, it may be possible to maximize proceeds with an alternative date. Learn more.
InsightA new year infrastructure update: Funding and how to prepareLee PetersonUpdates on the Infrastructure Investment and Jobs Act, CHIPS Act, and the Inflation Reduction Act. What this means for funding and how businesses should prepare. Learn more.
InsightQ&A: Performance improvement strategies for long-term valueCynthia RomanoPerformance improvement strategies come with benefits and challenges. Learn more from CohnReznick’s Cynthia Romano in this Q&A. Read more.